The Claim
“Contracted out the managing of the Do Not Call Register to a marketing company.”
Original Sources Provided
✅ FACTUAL VERIFICATION
TRUE. In September 2014, the Australian Communications and Media Authority (ACMA) awarded the contract to operate the Do Not Call Register to Salmat Digital, an Australian multichannel marketing company [1][2]. The contract, valued at $16.71 million originally (later amended to $13.8 million), ran for 5 years and 2 months from September 2014 to November 2019 [3].
The Do Not Call Register is a secure database where Australians can register their phone numbers to opt out of receiving most unsolicited telemarketing calls and faxes [4]. Under the contract, Salmat was responsible for:
- Allowing people to add their details to the register
- "Washing" lists provided by businesses to remove numbers on the register
- Running the www.donotcall.gov.au website
- Taking complaints from people who received unsolicited telemarketing calls for analysis and action by ACMA [5]
Missing Context
The controversy and criticisms surrounding the contract award. The claim omits that the contract award generated significant controversy from consumer advocacy groups. The Consumer Action Law Centre raised concerns about Salmat being awarded the contract because [5]:
- Conflict of interest concerns: Salmat had previously opposed the creation of a "Do Not Knock Register"
- Connection to problematic practices: Salmat was connected with Salesforce, which was being sued by the Australian Competition and Consumer Commission (ACCC) for door-to-door selling practices
- Industry involvement: Gerard Brody, chief executive of the Consumer Action Law Centre, stated "A history of non-compliance with consumer protections should raise concerns" [5]
Previous operator issues: The previous operator of the register, Service Stream Solutions, had been fined $110,000 for breaching the register itself [5], which may have contributed to the decision to change operators.
Standard procurement process: ACMA stated that Salmat was selected following a "competitive tender process in line with Commonwealth Procurement Rules" and that the process considered "each tenderer's capability and capacity as well as the technical merit and value for money of its bid" [5].
Source Credibility Assessment
The original source (SmartCompany article) is a legitimate Australian business news publication with professional journalism standards [5]. The article:
- Quotes both critics (Consumer Action Law Centre) and ACMA's official response
- Provides context about the controversy
- Is factually accurate about the contract award
- Has balanced coverage including ACMA's defense of the selection process
The claim itself is factually accurate but lacks the nuanced context about why this was controversial and the procurement process that was followed.
Labor Comparison
Did Labor do something similar?
The Do Not Call Register was actually established under a Coalition government. The Australian Parliament passed the Do Not Call Register Act 2006 under the Howard government (Coalition) on 30 June 2006 [1][6]. The Register commenced operation on 1 May 2007 - just before the Labor government (Rudd) was elected in November 2007 [1].
Both parties have outsourced government services. The operation of the Do Not Call Register has always been contracted out to private operators:
- Pre-2014: Service Stream Solutions (under Labor governments Rudd/Gillard)
- 2014-2019: Salmat Digital (under Coalition government Abbott/Turnbull)
Outsourcing is standard practice across governments. Contracting out operational services like the Do Not Call Register is standard practice regardless of which party is in power. The 2006 legislation establishing the register explicitly provided for a "contracted service provider" to operate it [7].
Labor also used Salmat for government contracts. According to Wikipedia, Salmat's clients included "the Government of Australia" generally, indicating both Labor and Coalition governments used their services [2].
Balanced Perspective
While the claim is factually true that the Coalition contracted the Do Not Call Register management to Salmat, a marketing company, several important contextual points provide balance:
Not a Coalition creation: The Do Not Call Register was established by the Howard government (Coalition) in 2006 and has been operational since 2007, surviving through multiple changes of government [1][6].
Continuing existing practice: The register had always been operated by contracted private providers. The previous operator under Labor (Service Stream Solutions) had itself been fined $110,000 for breaching the register [5], suggesting a need for change.
Legitimate competitive tender: ACMA defended the selection, stating Salmat was chosen through a competitive tender process considering capability, capacity, technical merit and value for money [5].
Conflict management: ACMA stated that "appropriate processes are in place to manage any conflicts of interest that may arise" [5].
Cross-party practice: Both major parties have outsourced operational government services to private providers. The structure of the Do Not Call Register Act itself (passed by Coalition, operationalized by Labor) specifically envisions contracted service providers [7].
Key context: This was not unique to the Coalition - the register has been operated by contracted providers under both parties, and the Act establishing it (passed by Coalition) was designed this way from inception.
TRUE
7.0
out of 10
The factual claim is accurate. The Coalition government (under Communications Minister Malcolm Turnbull in the Abbott government) did contract the management of the Do Not Call Register to Salmat Digital, a marketing company, in September 2014.
However, the claim lacks important context: the register had been operated by contracted providers under Labor as well; the register itself was created by the Coalition (Howard government) in 2006; and the contract followed a competitive tender process with ACMA stating appropriate conflict management processes were in place.
Final Score
7.0
OUT OF 10
TRUE
The factual claim is accurate. The Coalition government (under Communications Minister Malcolm Turnbull in the Abbott government) did contract the management of the Do Not Call Register to Salmat Digital, a marketing company, in September 2014.
However, the claim lacks important context: the register had been operated by contracted providers under Labor as well; the register itself was created by the Coalition (Howard government) in 2006; and the contract followed a competitive tender process with ACMA stating appropriate conflict management processes were in place.
📚 SOURCES & CITATIONS (7)
-
1
Do Not Call Register - Wikipedia
Wikipedia
-
2
Salmat - Wikipedia
Wikipedia
-
3
Salmat Digital Pty Ltd contract with Australian Communications and Media Authority
Explore deep insights into Australian Government contracts, suppliers, agencies, and categories.
Tenders+ -
4
Do Not Call Register - ACMA
Acma Gov
-
5
Outcry over award of Do Not Call Register contract to Salmat Digital
Controversy has surrounded the award of the contract to operate the Do Not Call Register to Salmat Digital. The Australia Communications and Media
SmartCompany -
6
Do Not Call Register Act 2006
Federal Register of Legislation
-
7
Do Not Call Register Act 2006 - Legislation
Legislation Gov
Rating Scale Methodology
1-3: FALSE
Factually incorrect or malicious fabrication.
4-6: PARTIAL
Some truth but context is missing or skewed.
7-9: MOSTLY TRUE
Minor technicalities or phrasing issues.
10: ACCURATE
Perfectly verified and contextually fair.
Methodology: Ratings are determined through cross-referencing official government records, independent fact-checking organizations, and primary source documents.